Amazon in Talks to Acquire Globalstar for $8.8 Billion
Amazon is reportedly in negotiations to acquire Globalstar, a satellite maker, for approximately $8.8 billion. This acquisition could enhance Amazon’s low-earth orbit (LEO) satellite capabilities as it competes with other players like SpaceX’s Starlink.
Globalstar currently operates 48 satellites and plans to launch an additional 48 soon, aiming for a total constellation of 3,080 satellites. Although the deal may strategically benefit Amazon’s satellite business and cloud services, it raises concerns for investors due to Globalstar’s modest revenue of $273 million in 2025, making the acquisition premium-priced at 32 times its annual sales.
Amazon’s stock has declined 8% year-to-date, largely due to its substantial investments in cloud and AI infrastructure and challenges affecting its e-commerce sector. Analysts express skepticism that this potential acquisition would boost Amazon’s stock performance in the near term.
